Croatia, known for its coastline and historic cities, is becoming too expensive for tourists. With prices rising faster than in Greece, Spain, and Italy, officials and business leaders fear that tourists may opt for better deals elsewhere, reports N1. 

Prime Minister Andrej Plenković has warned that maintaining competitive prices is crucial to protecting the country’s tourism industry, according to Etias.com.

Tourism Sector Sees Price Hikes

In the past three years, tourist prices in Croatia have surged by around 50%, while other Mediterranean countries have experienced increases of only 15-20%. As a result, Croatia has become more expensive than key competitors such as Greece and Spain, raising concerns about affordability.

A Growing Problem for Croatia and Other Tourist Destinations: “It Will Only Get Worse”

Rising costs in the hospitality sector have driven up prices, leading to stagnation in overnight stays and a decline in tourist spending. The impact is already evident, as fewer tourists are arriving from key markets such as Germany, the Czech Republic, Austria, and Italy. Last summer, Croatia’s revenue from international tourism during peak season dropped by 0.7% compared to the previous year.

Kristjan Staničić, director of the Croatian National Tourist Board, highlighted that many travelers are now prioritizing value for money. His analysis showed that for two-thirds of Croatia’s main tourist markets, cost is the most important factor in travel decisions.

Government Criticism

Finance Minister Marko Primorac criticized the industry for excessively raising prices. “It seems like you’ve gotten carried away,” he said.

He argued that Croatian tourism does not justify higher prices than Greece, Spain, or Portugal. He also pointed out that Croatian taxpayers support tourism through tax policies, yet many cannot afford vacations in their own country.

Tourism Minister Tonči Glavina stated that 2025 will be a crucial year for Croatia to become more price-competitive. While rejecting the idea of a tourism boycott, he acknowledged that price reductions might be necessary to maintain high visitor numbers.

Meanwhile, hotel industry leaders claim that wage growth and inflation, rather than profit-seeking, are driving price increases. Veljko Ostojić from the Croatian Tourism Association noted that hotel profits have declined because costs are rising faster than revenue. He added that last year, hotel prices in Croatia rose by only 1.9%, whereas other Mediterranean destinations saw an increase of 4.5%.

The Croatian Family Accommodation Association has also expressed concern over the high commission fees charged by global booking platforms. Some industry leaders have suggested creating a national booking system to reduce reliance on international platforms.

Rising Costs and New Restrictions

As Croatia struggles with rising costs, travelers within the European Union (EU) must also prepare for new entry requirements under the European Travel Information and Authorization System (ETIAS). Starting in 2026, visitors from visa-exempt countries outside the EU will need ETIAS approval to enter the Schengen Area, including Croatia.

Tourists making short-term visits, already deterred by high prices, may turn to cheaper destinations, especially as budget-conscious travelers consider both costs and new entry requirements. While obtaining ETIAS approval is a simple process, it could discourage those already hesitant about visiting Croatia.

For long-term visitors and migrants, the situation is more complex. Croatia’s full integration into the Schengen Zone has made it an attractive option for digital nomads and seasonal workers. However, the rising cost of living, including higher tourism prices, may push some away.

Economic Consequences

A decline in Croatia’s tourism sector could impact labor mobility and work permit discussions across the EU. Countries with strong ties to Croatia, such as Austria and Germany—where many Croatians work—could see more people seeking jobs abroad if the tourism sector weakens, increasing pressure on the EU labor market, especially in industries already facing worker shortages.

At the same time, fewer tourists could prompt the Croatian government to find new ways to attract foreign workers. Policymakers may adjust work visa rules or offer incentives for long-term migration. If tourism-related jobs decrease, immigration quotas—especially for seasonal workers from outside the EU—may also be reconsidered.

A Warning Sign for the EU

Croatia’s situation serves as a warning for the EU. Tourism-dependent economies are vulnerable to price changes, and maintaining reasonable costs is crucial for stability. Other Mediterranean countries, such as Spain and Greece, may take note and adjust their pricing strategies to avoid losing visitors while keeping their economies strong.

An Uncertain Future

The Croatian government hopes that prices will stabilize in 2025, but the outlook remains uncertain. As Germany, Austria, and Italy face economic slowdowns, tourists may become more cost-conscious than ever.

If Croatia fails to address affordability issues, it could lose its position in the Mediterranean tourism market. Officials and industry leaders must find a way to maintain quality while keeping the country accessible and competitive for both international and domestic travelers.

Deputy Mayor Jelka Tepšić emphasized the project's importance for managing tourist flows and alleviating pressure on the historic city center. The Park ‘n’ Ride system will allow visitors and commuters to park their vehicles on the city's eastern outskirts and continue their journey into Dubrovnik using public transport, easing traffic in the old town and surrounding areas.

The initiative is part of the city’s EU-funded ITU projects, which focus on sustainable urban mobility, including public transport electrification and digitalization. Minister of Regional Development Šime Erlić highlighted Dubrovnik’s efficient use of EU funds, ensuring that the city becomes greener and more accessible for both residents and visitors.

Zagrebačka Banka (Zaba) recorded a €450 million net profit in 2024, maintaining last year’s level, while its operating income rose 2.8% to €809 million. Net interest income reached €588 million, and net fee and commission income grew to €174 million.

The bank's total assets increased to €21.17 billion, with net loans rising 6.2% to €10.9 billion. Deposits totaled €17.4 billion, up 2.5%, mainly from household savings.

The Zagrebačka Banka Group reported a €556 million net profit, marking a 9.2% increase. Its operating income rose to €1.04 billion, driven by strong performances from Zagrebačka Banka d.d., UniCredit Bank Mostar, and UniCredit Leasing Croatia.

As part of the renovation program, the Dubrovnik Institute for Reconstruction, in collaboration with the Faculty of Civil Engineering at the University of Zagreb, will begin construction work today, February 10, 2025, to install a structural monitoring system for the loggia of the Rector’s Palace. The work is expected to last until the end of the week.

The monitoring activities will continue for 38 months, and based on the analyses and reports on the dynamic properties of the loggia's structure, a final document will be prepared, summarizing the entire monitoring process.

The Department for the Protection of Cultural Heritage, through the Conservation Office in Dubrovnik, has granted approval for these works.

The value of Croatia's goods exports in 2024 was €23.9 billion, representing a 4.6% increase compared to 2023, while imports rose by 5.4% to €41.8 billion, according to initial data from the Croatian Bureau of Statistics (DZS) published on Friday.

The trade deficit thus amounted to €17.8 billion last year, compared to €16.6 billion in 2023. The coverage of imports by exports in 2024 decreased to 57.3%, down from 57.8% in 2023.

According to the preliminary data from DZS, exports to EU countries in 2024 were valued at €15.6 billion, which is a 0.4% increase compared to 2023. The value of imports from EU countries grew by 7%, reaching €32.6 billion.

Statistics for exports to non-EU countries show a 13.4% growth, amounting to €8.3 billion, while imports from non-EU countries increased by 0.2%, reaching €9.2 billion.

The average monthly net salary per employee in legal entities in Zagreb for November 2024 was €1,566, which represents a nominal increase of 2.5% compared to October and a 12.9% increase compared to November 2023.

According to data from the City Office for Economy, Environmental Sustainability, and Strategic Planning, the highest average monthly net salary in legal entities for November 2024 was paid in the motor vehicle, trailer, and semi-trailer manufacturing sector, amounting to €2,479.

On the other hand, the lowest salary was paid in the leather and related products manufacturing sector, at €874.

The median net salary for November 2023 was €1,317, meaning that half of Zagreb’s employees earned less and half earned more than that amount.

Compared to the average monthly salary for November last year in Croatia, which was €1,366, the average net salary paid in Zagreb for that month was €200 higher.

The average monthly gross salary per employee in legal entities in Zagreb for November 2024 amounted to €2,249, which is an increase of 3.3% compared to October 2024 and a 13.4% increase compared to November 2023.

This summer, Croatia Airlines will expand its Zagreb network by launching five new routes, with most additions being the return of city connections that were in place before the COVID-19 pandemic. The new destinations include Milan Malpensa, Prague, Bucharest, Madrid, and Hamburg. Flights to Milan and Prague will start on June 2, with both routes operating three times a week, reports EX-YU Aviation. Services to Hamburg, Bucharest, and Madrid will begin in July, with Hamburg and Bucharest launching on July 1, and Madrid following on July 3. These three routes will also run three times weekly. All flights will be operated with Croatia Airlines’ Airbus A220-300 aircraft.

Launch Dates

• Milan: June 2
• Prague: June 2
• Hamburg: July 1
• Bucharest: July 1
• Madrid: July 3

This network expansion aligns with Croatia Airlines’ strategy to grow operations with the introduction of new A220 aircraft. The airline is scheduled to receive five A220-300s and one A220-100 in 2025, joining the two A220s delivered in 2024. Croatia Airlines last served Milan, Prague, and Bucharest from Zagreb in 2019, and had plans to resume them in 2020, but these were halted due to the pandemic. The airline last flew to Hamburg in 2012, though Eurowings operated the route from Split in recent years. Zagreb was linked to Hamburg in 2019 by Eurowings.

Competition and Market Landscape

Croatia Airlines will face direct competition on just one of its new routes: Zagreb to Madrid, where it will compete with Iberia, which plans to operate between three and nine weekly flights depending on the month. The frequencies will range from three weekly flights in the shoulder seasons (April, May, and October) to nine weekly flights during the peak summer period (August). On the Milan route, Ryanair indirectly competes, flying five times per week to Bergamo Airport during the summer.

The airline had also planned to add a route between Zagreb and Lisbon, but was unable to secure the necessary airport slots.

The captain of the Croatian national football team, 39-year-old Luka Modrić, is now in his 13th season wearing the Real Madrid jersey. With his contract set to expire in June this year, many are wondering whether he will stay at the Santiago Bernabéu for another season, reports tPortal. 

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Real Madrid midfielder Luka Modric wants to extend his stay at the Santiago Bernabeu until 2026.

▪️Los Galácticos considers it positive that the 39-year-old Croatian captain will stay with the team for another 1 year. pic.twitter.com/lhydDnagpU

— Ekrem KONUR (@Ekremkonur) February 7, 2025

Modrić has repeatedly shown his deep commitment to Real Madrid. He has accepted pay cuts, turned down lucrative offers from Saudi Arabia, and resisted calls to join MLS in the United States.

With his dedication, work ethic, and the vital role he plays in Carlo Ancelotti’s squad, Modrić has undoubtedly earned every contract renewal. Despite being 39 years old, there is no sign of decline in his performances.

Modrić is keen to stay at Real Madrid for another season, ensuring he is in top shape for the 2026 World Cup.

And it seems Real Madrid has the same idea.

At least, that’s what journalist Ekrem Konur from Caught Offside is reporting, stating that Real Madrid also wants to keep Modrić.